Legal Question in Business Law in Georgia
LLC law in Georgia
If an individual purchases real estate in Georgia via a personally-secured mortgage, can that mortgage/property then be transferred to an LLC? If so, what are the restrictions?
2 Answers from Attorneys
Re: LLC law in Georgia
Generally, as long as the ownership of the LLC is the same as the ownership of the property, the mortgage holder will not care that the property is transferred. But technically you will have to get their consent.
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Re: LLC law in Georgia
Normally, mortgages contain a "due on sale clause", prohibiting transfer of the property without the lender's consent. So long as the lender consents, the property can be freely transferred. To be binding on the lender, it must be in writing, and specify the party to which the property will be transferred.
IN the (unlikely) event that there is no due on sale clause, there are no restrictions. If you are in doubt, have a lawyer review the document.
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